Essay about No One Would Listen

1171 WordsOct 22, 20125 Pages
Review Essay No one would listen By Joseph Kiobbo, Newman University No one would Listen: A True Financial Thriller. Harry Markopolos, ed. New Jersey: John Wiley and Sons, Inc. 2010. Pp. 345. $17.35 (hard cover) This book brought out the failures of the Securities and Exchange Commission (SEC) in one of the biggest Ponzi schemes in America’s history, as orchestrated by Bernie Madoff. Harry Markopolos caught up with Madoff’s Ponzi scheme earlier on in his career and saw all the red flags. There was no explanation of the continuous one percent yield in over forty five stocks that Madoff dealt with. Madoff took advantage of the laxity by the SEC officials in failing to follow up complains with an investigation, and the trust…show more content…
The employees and traders shrugged it off. As it would later turn out, Madoff's illegal investment business was indeed subsidizing his legal trading operation. Among the charges to which Madoff pleaded guilty in March were three counts of money laundering, which involved transferring millions of dollars from Madoff's fraudulent business through his London operation to his legitimate New York business. At least $250 million was transferred in this manner, according to the charges. In 2006 when the SEC launched an investigation into Madoff’s dealings it was from persuasion from Markopolos that Madoff was running a Ponzi scheme and he was also a key source for the Mar/Hedge article. The SEC also examined whether Fairfield Greenwich, a giant feeder fund, was properly disclosing the extent of its reliance on Madoff. According to research by Harry Markopolos, it grew from as much as $7 billion in 2000 to as much as $50 billion by the end of 2005. What had started decades before as a small-time recruiting effort by Madoff agents at country clubs had gone global. Massive international institutions such as Grupo Santander, Fortis Bank, and Union Bancaire Privée were all funneling billions -- sometimes through intermediaries -- to Madoff, lured by the call of steady 10% to 12% returns. Even one of the world's biggest sovereign funds, the Abu Dhabi Investment Authority, ended up sinking tens of millions of
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